Left Menu
Development News Edition

Asian markets rebound after fresh Wall St records

PTI | Hong Kong | Updated: 11-02-2020 10:51 IST | Created: 11-02-2020 10:44 IST
Asian markets rebound after fresh Wall St records
Image Credit: StoryBlocks

Asian markets rebounded on Tuesday spurred by fresh Wall Street records but investors remained jittery about the global economic impact of the coronavirus outbreak in China. Eyes are on China as the world's second-largest economy sputters back up after a forced extension to the Lunar New Year holiday because of the outbreak, which has killed more than 1,000 people and disrupted major global supply chains.

After a nervous start to the week that saw Asian bourses plunge, most bounced back. Hong Kong's benchmark Hang Seng Index was up 1.2 percent in morning trade, Shanghai was up 0.4 percent, Sydney climbed 0.6 percent and Singapore rose 0.9 percent.

Seoul jumped 1.4 percent and Taipei rose 0.8 percent, while Wellington and Jakarta were also up. Markets in Tokyo were closed for a public holiday.

The positive mood in Asia followed Monday rallies on Wall Street, where the S&P 500 and the tech-heavy Nasdaq hit fresh records. The 2019-nCoV virus, which emerged in central China, has spooked equity and oil markets for weeks, having spread to more than two dozen countries.

More than 42,000 infections have been confirmed so far in mainland China, and President Xi Jinping has described the situation in Hubei, the outbreak epicenter, as "still very grave". Chinese authorities are expected to make policy interventions to help ease the economic hit from the virus, analysts said, which could boost market confidence.

"While... uncertainties remain around nCoV, one sure thing you can probably count on is that the mother of all stimulus measures will get laid down by the (Chinese central bank)," wrote Stephen Innes, chief market strategist for Asia-Pacific at AxiCorp. Investors will also be looking to see any assessments about the economic impact of the outbreak in US Federal Reserve Chairman Jerome Powell's testimony to Congress on Tuesday and Wednesday.

A number of earnings reports are also expected this week, including from companies that could see a coronavirus hit. Chinese tech giant Alibaba, Japanese automaker Nissan and MGM Resorts are among the firms scheduled to announce results on Thursday.

"We have to consider that the rebound in growth we were expecting over 2020 may be either delayed or somewhat less vigorous than we were anticipating due to the impact of the virus," Mark Robertson of Aviva Investors told Bloomberg News. Expectations of a decline in demand from China, which was already battling an economic slowdown, has caused oil prices to tumble in recent weeks as fears rose of excess supply.

But like Asian equities, both contracts rebounded on Tuesday. Brent Crude was up 1.4 percent while West Texas Intermediate rose 1.2 percent. Hong Kong - Hang Seng: UP 1.2 percent at 27,559.15 Shanghai - Composite: UP 0.4 percent at 2,902.11 Tokyo - Nikkei 225: Closed for public holiday Euro/dollar: DOWN at $1.0915 from $1.0916 at 2145 GMT Pound/dollar: UP at $1.2918 from $1.2911

Euro/pound: DOWN at 84.49 pence from 84.50 pence Dollar/yen: UP at 109.87 from 109.75 Brent Crude: UP 1.4 percent at $54.01 per barrel West Texas Intermediate: UP 1.2 percent at $50.14 per barrel New York - Dow: UP 0.6 percent at 29,276.82 (close) New York - S&P 500: UP 0.7 percent at 3,352.09 (close) New York - Nasdaq: UP 1.1 percent at 9,628.39 (close) London - FTSE 100: DOWN 0.3 percent at 7,446.88 (close)

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

Download The Devdiscourse News App for Latest News.


TRENDING

OPINION / BLOG / INTERVIEW

Diya Jalao for COVID 19: How Modi put Power Grids and power warriors at risk?

While Prime Minister Narendra Modis staunch supporters are busy in search of hidden science behind the sudden announcement of 9minutes9pm campaign but his ignorance of the actual science has put the nation in another danger. The scientists ...

Energy markets post-COVID 19: Recovery may take time, transition to continue

As oil markets have crashed, the experts believe the oil prices will come down drastically and continue making the energy transition a financial burden for many economies for a couple of years.  However, the market alone was never...

'Diya jalao' for COVID 19: Modi needs to practice his teachings and control fake news on social media

In his video message to the nation on Friday the Prime Minister talks about peoples collective power to win the invincible. However, he has made no concreate efforts to win over the confidence and represent the collective power of the polit...

Tourism post-COVID 19: Lessons learned, out-of-box strategies to ensure the revival

In the pre-COVID 19 period the tourism industry was seen with much hope throughout the world. However, the COVID 19 pandemic has completely paralysed the tourism industry and its dependent sectors. The tourism industry in the post-COVID 19 ...

Videos

Latest News

Report: MLB could start season at spring training sites

Major League Baseball is considering the use of spring training sites to start the 2020 regular season, most likely in Arizona, with the players quarantined and no fans in the stands, The Athletics Ken Rosenthal reported. MLB pushed back it...

TN reports 2 COVID-19 deaths; spurt in cases in southern states

Tamil Nadu on Saturday reported two coronavirus deaths, both with a Tablighi Jamaat connection, as southern states continued to witness spurt in COVID-19 cases who had attended the Delhi event last month. A 51-year-old man from Villupuram i...

Basketball-Bryan, Duncan and Garnett headline Hall of Fame class

The late Kobe Bryant was selected on Saturday as a member of the Naismith Memorial Basketball Hall of Fame in his first year of eligibility. The 18-time NBA All-Star, who was killed in a helicopter crash on Jan. 26, is part of a nine-member...

Coronavirus wreaks grimmest toll yet in New York state: 630 dead in a day

Coronavirus-related illnesses killed 630 people on the last day in New York state, Governor Andrew Cuomo said on Saturday, in the bleakest 24 hours yet for the U.S. state hit hardest by the pandemic. The novel coronavirus has now killed 3,5...

Give Feedback